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NGP Capital Resources Company Reports Operating Results (10-Q/A)

June 25, 2010 | About:
10qk

10qk

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NGP Capital Resources Company (NGPC) filed Amended Quarterly Report for the period ended 2007-09-30.

Ngp Capital Resources Company has a market cap of $163.6 million; its shares were traded at around $7.56 with a P/E ratio of 36.1 and P/S ratio of 6.7. The dividend yield of Ngp Capital Resources Company stocks is 9.1%.NGPC is in the portfolios of Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Investment income for the quarter ended September 30, 2007 was $9.1 million with $7.7 million attributable to targeted investments in thirteen portfolio companies, $0.2 million from corporate notes and $1.2 million attributable to investments in cash equivalents. This compares to investment income for the quarter ended September 30, 2006 of $7.6 million with $5.7 million attributable to targeted investments in fourteen portfolio companies, $0.3 million from corporate notes, $0.2 million in fee income from third parties and affiliates, and $1.4 million attributable to investments in cash equivalents, agency notes and auction rate securities.

For the nine months ended September 30, 2007, investment income increased by $8.7 million, or approximately 47%, to $27.3 million from $18.6 million for the same period in 2006. For the nine months ended September 30, 2007, we recorded $21.9 million of investment income attributable to targeted investments in portfolio companies, $0.7 million from corporate notes, $4.4 million attributable to investments in cash equivalents, and $0.3 million in fee income from third parties and affiliates. This compares to investment income of $13.5 million attributable to targeted investments in portfolio companies, $0.9 million from corporate notes, $0.4 million in fee income from third parties and affiliates, and $3.8 million attributable to investments in cash equivalents and auction rate securities for the same period in 2006. The increase in investment income is primarily due to the 58% increase in the average quarterly balance of targeted investments as of September 30, 2007 compared to September 30, 2006.

For the quarter ended September 30, 2007, operating expenses were $3.8 million compared to $2.8 million for the quarter ended September 30, 2006. The 2007 amount consisted of investment advisory and management and incentive fees of $1.1 million, insurance expenses, administrative services fees, professional fees, directors fees and other general and administrative expenses of $1.0 million and credit facility interest and fees of $1.7 million. In comparison, for the quarter ended September 30, 2006, investment advisory and management fees were $1.1 million, insurance expenses, administrative services fees, professional fees, directors fees and other general and administrative expenses were $0.9 million and credit facility fees were $0.8 million.

For the nine months ended September 30, 2007, operating expenses were $13.1 million compared to $6.9 million for the same period of 2006. The 2007 amount consisted of investment advisory and management and incentive fees of $5.3 million, insurance expenses, administrative services fees, professional fees, directors fees and other general and administrative expenses of $2.9 million and credit facility interest and fees of $4.9 million. In comparison, for the nine months ended September 30, 2006, investment advisory and management fees were $3.4 million, insurance expenses, administrative services fees, professional fees, directors fees and other general and administrative expenses were $2.5 million and credit facility fees were $1.0 million. The increase in operating expenses from 2006 compared to 2007 is attributable to higher investment advisory and management fees resulting from higher average total assets, increased interest expenses and fees due to higher borrowings, and increased incentive fees resulting from favorable portfolio performance.

For the quarter ended September 30, 2007, as restated, net unrealized depreciation before income taxes of $0.7 million was $0.7 million, compared to $0.8 million net unrealized appreciation for the third quarter of 2006. The $1.5 million decrease is attributable to a $0.7 million net decrease in the fair values of our targeted investments and a $0.8 million decrease in market prices of our corporate notes. For the nine months ended September 30, 2007, as restated, net unrealized appreciation before income taxes of $2.8 million was $5.3 million, compared to $1.7 million net unrealized depreciation for the same period of 2006. The $7.0 million increase is attributable to a $6.0 million increase in the fair values of our targeted investments and a $1.0 million increase in market prices of our corporate notes.

For the quarter ended September 30, 2007, as restated, we had a net increase in stockholders equity (net assets) resulting from operations of $3.5 million, or $0.20 per share, compared to $5.3 million, or $0.31 per share for the quarter ended September 30, 2006. For the nine months ended September 30, 2007, as restated, the net increase in stockholders equity (net assets) resulting from operations was $22.8 million, or $1.32 per share, compared to $9.7 million, or $0.56 per share for the nine months ended September 30, 2006. The $13.1 million, or $0.76 per share net increase in stockholders equity (net assets) resulting from operations is attributable to overall increased investment income and $6.3 million in net realized capital gains during the nine months ended September 30, 2007.

Read the The complete Report

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